POST UTME LEAD CITY UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government's tax revenue is given by T = 0.2Y, where T is tax revenue and Y is GDP. If GDP increases by 10%, what is the new tax revenue?
A. ₦20 billion
B. ₦22 billion
C. ₦24 billion
D. ₦26 billion
Question 2
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm increases labor from 4 to 9 units, while keeping capital cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor?
A. 10 units
B. 15 units
C. 20 units
D. 25 units
Question 4
A firm is considering two different production processes to produce a certain product. Process A requires an initial investment of ₦20 million and has a variable \cost of ₦10 per unit. Process B requires an initial investment of ₦25 million and has a variable \cost of ₦8 per unit. If the firm produces 15,000 units of the product, what is the total \cost of production for each process?
A. Process A: ₦250 million, Process B: ₦230 million
B. Process A: ₦280 million, Process B: ₦250 million
C. Process A: ₦310 million, Process B: ₦270 million
D. Process A: ₦340 million, Process B: ₦290 million
Question 5
A monopolistic firm in Nigeria faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the profit-maximizing price and quantity for the firm?
A. P = ₦40, Q = 30
B. P = ₦50, Q = 25
C. P = ₦60, Q = 20
D. P = ₦70, Q = 15
Question 6
A government budget is given by B = T + I, where B is the budget deficit, T is tax revenue, and I is government sp\ending. If tax revenue increases by 10% and government sp\ending remains cons\tant at ₦100 billion, what is the new budget deficit?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 7
A firm's revenue function is given by R = 2Q, where R is revenue and Q is output. If the firm increases output from 4 to 9 units, what is the new revenue?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 8
A consumer's utility function is given by ( u(x,y) = x^{0.5}y^{0.5} ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. (200, 100)
B. (150, 150)
C. (100, 200)
D. (50, 250)
Question 9
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 10
A government imposes a tax on a firm's output, which causes the firm's supply curve to shift to the left. What is the effect on the firm's profit-maximizing output and price?
A. Output increases, price decreases
B. Output decreases, price increases
C. Output increases, price increases
D. Output decreases, price decreases
Question 11
A firm operates in a perfectly competitive market. If the market price is ₦50, and the firm's marginal \cost is ₦40, what will be the firm's profit?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 12
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's profit-maximizing output?
A. Increases
B. Decreases
C. Remains the same
D. No effect
Question 13
The Nigerian government has introduced a new policy to promote industrialization in the country. The policy aims to increase the production of textiles by 20% within the next two years. If the current production level is 10 million units per year, what is the expected production level after two years?
A. 12 million units
B. 13 million units
C. 14 million units
D. 15 million units
Question 14
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, investing in irrigation infrastructure, and promoting the use of high-yielding rice varieties. However, the policy has been criticized for its potential impact on the environment and the displacement of small-scale farmers. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the increase in rice production, which may lead to a decrease in the production of other crops.
B. The opportunity \cost is the environmental degradation and displacement of small-scale farmers, which may lead to social and economic \costs.
C. The opportunity \cost is the increase in the price of rice, which may lead to a decrease in the demand for rice.
D. The opportunity \cost is the decrease in the production of other crops, which may lead to a decrease in the income of farmers.
Question 15
The government of Nigeria has implemented a policy to increase the production of maize in the country. The policy includes providing subsidies to farmers, investing in irrigation infrastructure, and promoting the use of high-yielding maize varieties. However, the policy has been criticized for its potential impact on the environment and the displacement of small-scale farmers. What is the opportunity \cost of implementing this policy?
A. The opportunity \cost is the increase in maize production, which may lead to a decrease in the production of other crops.
B. The opportunity \cost is the environmental degradation and displacement of small-scale farmers, which may lead to social and economic \costs.
C. The opportunity \cost is the increase in the price of maize, which may lead to a decrease in the demand for maize.
D. The opportunity \cost is the decrease in the production of other crops, which may lead to a decrease in the income of farmers.

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